(Bloomberg) -- The prospect of overseas lawyers practicing law in India faces a hurdle after a court agreed to hear a petition challenging the move.
The Delhi High Court sought a reply from the Bar Council of India, the regulatory body for the country's legal practice, which last year opened up the legal system for a limited entry for oversees lawyers on a reciprocal basis. It also sought a response from the Indian government.
While the relaxation does not permit foreign lawyers to argue before courts or tribunals, it is still a significant shift from the previous approach which permitted such professionals to merely give legal advice on international matters to their Indian clients or hold arbitration proceedings.
The rules laid down last March are “notably ambiguous” and “would greatly benefit from judicial clarification,” said Mohit Saraf, founder of Saraf and Partners. “Such scrutiny by the judiciary is essential to offer the clarity needed for charting the future course of the legal industry in India.”
The Indian lawyers petitioning the Delhi High Court argue that the Bar Council of India does not have the authority to grant such a permission and the move goes against the Advocates Act of 1961, which governs the legal profession in the country. The statute does not recognize foreign lawyers as advocates under its domain, the plea argues.
The entry of foreign firms could boost competition in the Indian legal space and open up opportunities for the country's legal professionals overseas.
The court case can benefit foreign law firms that intend to carry out work in India, according to Amit Singhania of Areete Law Offices. The “contentious” issue will be settled in a “holistic manner.” “The BCI notification will be stress tested before it is acted upon by the foreign law firms.”
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